PARIS, (Reuters) – France will see its economy rise from the stagnation of the previous quarter. But, consumers will be impacted by inflation, as the INSEE official stats agency predicted on Monday.

The second-largest economy in the euro zone will grow in the second quarter. This is due to parts of service sectors seeing business rebound after the COVID restrictions at the beginning of this year were lifted, INSEE reported in its economic outlook.

The first quarter saw a flatlining economy due to record-high inflation that threw off consumer spending which is normally the engine of French growth.

INSEE noted that households will not receive immediate relief due to high energy prices. The inflation rate is forecast to climb from 4.8% in April, to 5.4% in June.